Research Insights

Meet
the 2020
consumers
drivingchangeWhy brands must deliveron omnipresence, agility,
and sustainability

In association with

How IBM can help
For more than a century, IBM has been providing
businesses with the expertise needed to help
consumer products companies win in themarketplace. Our researchers and consultants
create innovative solutions that help clients become
more consumer centric to deliver compelling brandexperiences, collaborate more effectively withchannel partners, and align demand and supply.
For more information on our consumer productsolutions, see ibm.com/consumerproducts.
With a comprehensive portfolio of retail solutions
for merchandising, supply chain management,
omnichannel retailing, and advanced analytics,
IBM helps deliverrapid time to value. With global
capabilities that span 170 countries, we help retailers
anticipate change and profit from new opportunities.
For more information on our retail solutions, please
visit: ibm.com/industries/retail.

By Karl Haller, Jim Lee,and Jane Cheung

Talking points
Consumer shopping behavior has
fundamentally changed
Rather than being a planned, discrete activity,
shopping occurs whenever and wherever themood strikes today’s always-on consumers—
and this is increasingly while they are doing
something else. Seven in 10 consumers
surveyed say they shop in these so-called“micro-moments,” and 35 percent do so atleast weekly.
Sustainability has reached a tipping point
As consumers increasingly embrace social
causes, they seek products and brands thatalign with their values. Nearly six in
10 consumers surveyed are willing to change
their shopping habits to reduce environmental
impact. Nearly eight in 10 respondents
indicate sustainability is important for them.
And for those who say it is very/extremely
important, over 70 percent would pay
a premium of 35 percent, on average,
for brands that are sustainable andenvironmentally responsible.
Values are as important as value
Most consumers fall into one of two segments:
Value-driven consumers, who are primarily
concerned with getting their money’s worth
and select brands based on price andconvenience; and Purpose-driven consumers,
who select brands based on how well theyalign with their personal values and who arewilling to “walk the talk” when it comes tosustainability, changing their behavior, andeven paying more for brands that get it right.

Always-on consumers
reshape retail
Throughout history, shopping has involved taking a trip,
planned in advance, to a favorite store for which a
consumer made time. Then, the ecommerce revolution
upended that predictable relationship and activity. In lieu
of going to a store, people increasingly purchased goods
and services online and sight unseen. Yet, it’s only
recently, a decade or so since the advent of the smartphone, that a fundamental change truly occurred.
Thanks to mobile technology and social media, consumers
have been rewired as it pertains to shopping, and it may
usher in one of the industry’s biggest shifts in consumer
behavior. Today’s always-on consumers come highly
informed with specific demands pertaining to price, ingredients, delivery options, production methods, and muchmore. And they shop whenever and wherever the mood
strikes them, in so called “micro-moments,” often while
doing other tasks. In other words, consumers today shop
anywhere, anytime, and increasingly, any way they want.
Further, consumers are now driven by “micro-needs” thatreveal their desires for specific products or attributes that
conform with what they consider important or valuable.
Traditionally, the industry produced and carried offerings
that varied only slightly from locale to locale, largely basedon macro factors such as sales volume, climate, and competitive intensity, to name a few. It’s now important tooffer items based on specific qualities tailored to meet
consumers’ demands, such as products that are certified
as organic, fresh, environmentally friendly, parabens-free,
and the like. Over 70 percent of respondents say they arelooking for specific attributes that are important to themwhen choosing a brand.

1

81%

of respondents worldwide
belong to one of two shopper
segments: Value-driven
consumers (41%) who wantgood value and Purpose-driven
consumers (40%) who seek
products and services alignedwith their values.

57%

of consumers are willingto change their purchasing
habits to help reduce negativeenvironmental impact.

71%of those surveyed who indicatedthat traceability is very important
are willing to pay a premium forbrands that provide it.

71%

of consumers shop in“micro-moments” (shopping
while doing something else).
More than one in three say they
do so at least weekly and up to
multiple times daily.

2

Paradoxically, as consumer shopping continues to shift
toward digital touchpoints, the store is more important
than ever, even as its role morphs into something new. For
shoppers who crave convenience and immediacy, stores
have become critical nodes in the omnichannel supply andfulfillment ecosystem. For consumers who desire experiential and/or communal shopping, stores have become
showcases for them to have hands-on engagement withproducts and brands.
These wide-ranging requirements have radically transformed the retail and brand landscape over the past five
years. To better understand how consumer preferences
and priorities keep changing, as well as the resulting
impacts on brands, the IBM Institute for Business Value(IBV), in association with the National Retail Federation,
conducted a research study of 18,980 consumers in 28
countries (see Study methodology on page 14). We asked
about shopping habits, drivers of brand and product choice,consumption patterns, and the willingness to change
behavior based on a variety of personal values and beliefs.

Who are the 2020 consumers?
Four distinct consumer segments emerged from the analysis of our survey, each one representing different areas offocus (see Figure 1):
1. Value-driven consumers (41 percent of all consumers)
want good value, convenience, and products/services
to simplify life and are willing to pay for those benefits.
Value-driven consumers are primarily concerned withgetting their money’s worth and select brands based on
price and convenience. And unlike the other customer
segments, this group isn’t inclined to switch habits to
reduce negative environmental impact. The highest
concentrations of Value-driven consumers are found in
North America, Northern Europe, Japan, Korea, andChina. Fifty percent of this group report middle- or below
middle-income status.

2. Purpose-driven consumers (40 percent) seek products and brands that align with their lifestyle and thosewith health/wellness benefits. They are willing to pay a
premium for products and services that align with theirvalues and lifestyle. Purpose-driven consumers are also
willing to change their shopping habits to reduce environmental impact and care about issues such as sustainability
and recycling. Europe and parts of Southeast Asia and Latin
America have the biggest representation of this group.
Slightly over half (51 percent) of this group report middle orabove middle income.
3. Brand-driven consumers (13 percent) trust brands, andbrand is a major factor in their purchasing decisions.
Compared to other groups, they have the highest average
income, and they shop and spend more. Brand-driven
consumers want it all and are highly engaged in shopping.
And, they are willing to pay a premium for assortments that
fit their lifestyle. India, parts of the Middle East, and Latin
America have the highest concentration of them. Overall,
37 percent of Brand-driven consumers say they have above
middle income.

Figure 1
Most of the consumers we surveyed fell into two big groups: those who lead with their wallets and those who consume
with their values in mind.
41%
Value-driven
consumers
Low

40%
Purpose-driven
consumers
High

Low

13%
Brand-driven
consumers
High

Low

6%
Product-driven
consumers
High

Low

High

Importance of brand trust
Importance of convenience
Importance of sustainability
Willingness to change habits
to reduce environmental
impactSource: IBM Institute for Business Value.

34. Product-driven consumers (6 percent) focus on
product functionality. These consumers are less engaged
in shopping overall and are not tied to any brand or productattribute. Rather, our findings lead us to conclude that theProduct-driven consumer relies on research for nearly
every new product purchase. However, it’s not just about
price; these consumers are willing to pay a premium fortransparency that vouches for product authenticity. Just
over half of them (51 percent) identify as earning below
middle income.

As interesting as the consumer groupings are overall, it’salso notable how the degree of importance changes whenit comes to each product category. For example, when it
comes to shopping for apparel, 46 percent of consumers
are Value-driven. Conversely, when shopping for food,
44 percent of consumers are Purpose-driven, showing thatthey are more conscientious of what they put in their bodies
than what they put on them (see Figure 2).

Figure 2
Percentage of shoppers by product category.
Apparel/footwear

46%

7%

35%

35%

11%

5%

Value-driven consumers
Purpose-driven consumers
Brand-driven consumers
Product-driven consumers

4

Food and beverage/grocery

44%

16%

Personal care/beauty

40%

6% 14%

40%

Furniture/home

44%

38%

6% 12%

Sustainability hits the tipping point
Retail and consumer products companies around theworld have been increasing their focus on sustainability
over the past five years. Since 2014, global sustainable
and environmentally responsible investment is up
68 percent and now tops USD 30 trillion.1 More and more,awareness of global environmental issues is changing thehabits of consumers wherever they live. Already, substantial numbers of people have adopted a back-to-basics
mindset, opting for products that are simple, are fresh,and contain fewer or no preservatives or processed
elements.2
These attitudes are driving brand choice. Over 7 in 10
consumers say it’s at least moderately important thatbrands offer “clean” products (78 percent), are sustainable and environmentally responsible (77 percent),
support recycling (76 percent), or use natural ingredients(72 percent). See Figure 3.

Beliefs drive buying: Consumers shop “for good”
Nearly 6 in 10 consumers (57 percent) are willing to change
their purchasing habits to help reduce negative impact tothe environment, and among those who say sustainability isimportant for them, this jumps to 77 percent. Moreover, of
those who say these traits are very important, over sevenin 10 are willing to pay a premium for brands that support
recycling, practice sustainability, and/or are environmentally responsible (see Figure 4).

Figure 3
Consumers are looking for brands that:
Provide products and services that help simplify my life

53% 			

31%

16%

Offer “clean” products

50% 			

28%

21%

Provide products with health and wellness benefits

46% 			

31%

23%

Are sustainable and/or environmentally responsible

45% 			

32%

23%

32%

24%

Support recycling

44% 		
Use organic ingredients

41%
Very important

31%
Moderately important

28%
Slightly or not important

Figure 4
For attributes they say are very important to them,consumers are willing to pay a premium for brands that:
Offer “clean” products

77%
Provide greater health and wellness benefits

77%
Deliver products and services that help simplify my life75%
Use organic ingredients73%
Support recycling

72%
Ensure authenticity of products

72%
Are sustainable and/or environmentally responsible

72%
Provide full transparency

71%

5

Sustainability priorities transcend age

Sustainability priorities based on location

While Millennials may be leading the charge insustainability awareness, every age group indicatesthat sustainability, environmental, and/or personalwellness attributes are significant considerations inselecting brands (see Figure 5). While Gen Z cites healthand wellness as their top priority, clean products aremost important for the other groups. Interestingly,
natural/organic attributes are of lower importanceacross age groups.

Despite widespread importance of sustainability, there
are notable differences in shopper priorities acrossregions and countries. To cater to requirements that varyby geography, companies need to truly understand what’s
most important to consumers in each local market. This
includes knowing the “sustainability sophistication” ordegree to which sustainability is locally embedded andenforced in each market. For example, providing healthand wellness benefits is relatively more important in Italy
and Spain than in the Nordics. Meanwhile, those in China
and India rate “clean” products as their top priority.

Figure 5
Each age group surveyed is very consistent in the relative importance of sustainability and health-related attributes ofwhat they buy. (Percentage of respondents citing these attributes as Very/Extremely/Moderately important to them.)

85%

80%

Gen Z

79%

75%

75%

70%

72%
71%

Millenials

Gen X

81%
80%
79%
78%

80%

76%

78%
77%

73%

Boomers

78%
75%
74%
73%

6

Sustainable/environmentally
responsible
Health and welness benefits
Support recycling

67%
65%

“Clean” products

Natural/organic ingredients

Trust but verify
With sustainability front and center, consumers do morethan just check the list of ingredients on a label. They
want details about sourcing, how products are made orprocessed, as well as how they are delivered (see casestudy, “Farmer Connect”). Of the consumers
surveyed, 73 percent indicate that traceability of products
is important to them. Of those who say this trait is very
important, 71 percent would pay a premium for it. Shoppers
also seek information on corporate sustainability policies.
Many want assurances that brands support recycling, fundcharitable causes, or take other actions demonstratingsocial responsibility.
When consumers choose a product with sustainability
in mind, 84 percent say brand trust is important—in otherwords, consumers are using brands as a proxy for theattributes they seek. Strikingly, regardless of how muchconsumers trust a brand, they will still do extensive research
before purchasing (see Figure 6). Even 75 percent of Branddriven consumers say they conduct substantial amounts ofresearch prior to making purchases. Therefore, trust andcredibility need to be constantly reinforced.

Farmer Connect: A journeyof coffee from bean to brew
on blockchain3
Farmer Connect is a blockchain platform thatconnects coffee growers, traders, roasters, andconsumers, enabling them to share data that benefits
each ecosystem actor, while also growing the coffee
market and incentivizing sustainability practices.
The platform tracks each step of the coffee’s journeyfrom co-op to cup, allowing traders and roasters
to better understand impacts on coffee quality,
while empowering consumers to see their coffee’s
production journey. Customers can also support
sustainability and quality practices with donations
and tips that go to the farmers who grew their coffee.
Built on IBM Blockchain Transparent Supply, Farmer
Connect is addressing important systemic industry
issues by putting the right data in the right hands at
the right time.

Figure 6
Regardless of how much they trust a brand, consumers
across all age groups will conduct extensive research
prior to making their purchases.

Conduct research daily, weekly, monthly (percent)

100

90

Millennials

Gen Z
80

Gen X
70

Baby Boomers
60
60

70

80

90

Importance in trusting the brand (percent)100
7Eschew the new: Impacts from the circular economy

Brands respond to the sustainability mandate

As part of consumers’ increasing focus on sustainability,
they are turning to new purchasing and consumption
models that are disrupting many traditional brands andcreating opportunities for new entrants. Consider the riseof the “circular economy,” which offers alternative ways
to attain products like renting them and buying
pre-owned goods.

As consumers continue to gravitate toward moresustainable products, brands are no longer being judged
against a single lens of what their products can do forindividual consumers. Their preferences about productattributes and company values greatly affect where theychoose to shop, and this is true across both mature andemerging markets. In fact, 57 percent of respondents saythey are willing to change buying habits to reduce environmental impact. And more consumers in emerging markets(62 percent) are willing to make such changes than those inmature markets (54 percent).

When it comes to purchasing pre-owned, repaired, or
renewed products, 70 percent of respondents have triedor would like to try such practices, and 84 percent of those
who have tried them plan to continue to do so. And nearlyeight in 10 Gen Z and Millennials have purchased or wantto purchase pre-owned products (see Figure 7). As for
renting products, nearly 60 percent of those surveyedhave tried it or would like to, and 77 percent of those who
already do plan on doing it again.

Figure 7
The circular economy appeals to all age groups.
Rent or want to rent
products insteadof purchasing

Purchased or want topurchase pre-owned,
repaired, or renewed products

78% 77%
70%

69% 70%

58%

57%

41%

Gen Z

8

Millennials

Gen X

Boomers

Large global consumer brands that ignore sustainability
increase reputational and business risk. A Deutsche
Bank report revealed that companies that experienced
positive press regarding climate change saw share priceoutperformance of 26 percent per year over the MSCIWorld index.4 Conversely, the report also found a link
between bad press and underperformance.
Given that sustainability has now become a key part ofconsumers’ decision-making process, it’s imperative thatbrands and retailers increase their focus and improve theirability to meet these preferences. This offers competitorsof all sizes the opportunity to build trust, especially with
Purpose-driven consumers.

Action guide
Sustainability hits its tipping point“Sustainability” has become a catch-all term that canencompass anything from environmental conservation
to factory conditions to employee relations, and much in
between. Thus, for any company, it can seem daunting toincorporate sustainability into its strategy and operations.
Yet, success requires it to be part of your short- and longterm strategic planning from start to finish. To do it right,
companies need to:

1. Earn consumers’ confidence throughtransparency and traceability– Consumers’ brand loyalty and purchasing decisions
are highly contingent on detailed product information.
Employ the latest technologies to provide transparencyof production methods and traceability of source
materials. Demonstrate your commitments to sustainability and environmental responsibility by offering
details about operations, as well as how you manage
your sustainability agenda.

2. Factor in consumers’ willingness to contributeto the cause– If consumers are willing to pay a premium or change
behavior to reduce environmental impact, then offer
options that provide trade-offs between supply chain
cost, service, and environmental impact. In the “lastmile” delivery from fulfillment center to home, tradeoffs can reduce variable logistics cost while enabling
the consumer to participate in initiatives that reduce
emission or otherwise help maintain a healthy planet.

3. Leverage sustainability as a driver forend-to-end operations– The supply chain is a highly complex network of entities.
Raw material suppliers, manufacturers, third-party
logistics providers, and retailers all struggle to operate
as one due to conflicting business goals and operating
models. But under a purpose-driven objective, such as
the sustainable sourcing of palm oil in personal care or
the provenance of eggs and milk, end-to-end integration
serves a greater goal and seemingly the network will
abide. Examine capabilities and adjust investments tocreate new inter-company partnerships focused on
environmental impact and social responsibility.

4. Align sustainability initiatives to yourcore competency– Brands and retailers need to know which specific traits
rank highly so they can factor that valuable informationinto product design and development. Consumer goods
manufacturers are not only good at producing high quality finished goods, they are experts at reducing waste.
For example, in the food and beverage industry, discarded food can be given a second life by partneringwith farms and kitchens to turn work-in-process andsemi-finished goods that would normally be discarded
into nutrient-rich by-products such as animal feed,
protein flour, or even beer.
– The circular economy is gaining momentum. Brands andretailers are actively looking to participate in this new
economy in varied ways from recycling textiles, fabrics,
and plastics. Others are forging new ways consumers
shop. Look for ways your organization can harness thezeitgeist to find innovations to reduce waste and fulfill
customers’ sustainability demands with new products
and processes.

9Shopping has changed, but
fundamentals still matter

Micro-moments: Handling always-on consumers

Consumers in 2020 are always online and have at theirfingertips an unprecedented ability to access information
about products and services. Thus, the pressure intensifies for brands and retailers to be ready not just to enableany-time shopping experiences, but also to do it flexibly.
In addition to this unrelenting quest for ease and everavailable shopping experiences, brands need to keep
delivering on the fundamentals—and doing that better
than the competition. How consumers interact with nearly
any type of business often comes down to habit andneeds. The reason consumers shop where they do is stillrooted in perennially important fundamentals, such as
convenience and getting a fair deal.
To accomplish these things, brands and retailers have tounderstand which basic needs are still critical to shoppers
and get better at accommodating their continuallychanging needs and desires.

Shopping moments now happen at different points in time
for different reasons. So, it is especially important tounderstand the person and the context in which they are
shopping. At various times, the same person can be shopping for a party, a gift, or a meal, for example—and doing
so from the treadmill, at lunchtime, or in countless othersettings. While a shopper may still be doing replenishment
for food, it may be done individually for particular items asneeded, rather than during a single, regular weekly trip.
While 71 percent of respondents told us they shop in
micro-moments, there is a burgeoning subset, more than
one in three, who do so at least weekly. In other words,
they’re shopping “in the background” while doing othertasks (see Figure 8). And nearly two-thirds of those who
shop in micro-moments require flexibility for their orders
to be fulfilled. And so, in consumers’ quest for availability
and speed, both brands and retailers can differentiatethemselves—and delight shoppers—by being able to offer
accurate, informative contextualized content—anything
relevant for that shopping “trip,” from pricing to productdetails to inventory to order status—all available
anywhere and any time.

Figure 8
Just over seven in 10 consumers surveyed say they shop in “micro-moments.” Of those, 35% say they do it
weekly or more often.

71%

shop inmicromoments

10

Shop in micro-moments at least weekly

35%Micro-needs: Catering to the need for speed andease with the latest technologies
Consumers are increasingly looking for products with specific attributes that align with their values, so offering theright assortment is a key differentiator. However, high on thelist of consumers’ desires is a convenient and easy shopping
experience. Moreover, the top requirement of all surveyedgroups is for brands and retailers to “simplify my life.”
While 86 percent of respondents say stores must havean assortment that fits their lifestyles, 84 percent said it’s
important they can find what they need to get in and out of thestore fast. It follows that respondents most desire the use oftechnologies that help find what they need easily and quickly.

Awareness of new shopping technologies is generally
above 90 percent across the board; as a result,consumers are keen on experimenting with the latest
tools. Seventy-one percent of respondents are alreadyusing or want to try searching by visual means; closebehind are 69 percent who use or want voice search
options (see Figure 9).
However, none of the emerging search methods hasreally taken hold yet. In fact, only voice search is above
35 percent trial rates, and satisfaction is mixed. By 2021,
Gartner predicts that early adopter brands that redesign
their websites to support visual and voice search will
increase digital commerce revenue by 30 percent, which
could only bode well for brands, in terms of gaining new
information to help them understand consumers better.5

Figure 9
Technologies that respondents have tried or would like to try.
Voice search

In-store digital display

37%

32%

25%

5%

Social shopping
28%

34%

6%

Visual search

25%

9%

24%

39%

29%

8%

Smart dressing room
40%

21%

7%

In-store app navigation
23%

42%

Geo-location services

32%

31%

24%

42%

18%

41%

27%

14%

Virtual reality
27%

8%

19%

50%

23%

8%

I have tried this I would like to try I am not interested I don’t know what this is11

Enabling a frictionless shopping experience
Even as shopping options increasingly involve specificrequests and multiple channels, consumers aroundthe world still want effortless and uncomplicatedexperiences. More than ever, consumers shop on an
as-needed basis.
From buy online-ship to home, to BOPIS/Click-and-Collect(buy online, pick up in store, or pick up at curbside) to
BAGA (buy anywhere, and get anywhere), demand is
growing for all fulfillment methods (see Figure 10). As
shoppers require speedy home delivery, stores havebecome a critical component in meeting this demand,
which explains why BOPIS has grown over 4x over the
past five years (see Figure 10).
Thus, having the right assortments is a differentiator for
retailers and brands to attract consumers to both traditional and digital channels. What’s more, 82 percent of
shoppers say they purchase additional items when theycome into the store to pick up an online purchase.6 Thus,
it’s in retailers’ best interests to make the BOPIS experience as friction-free as possible. Even as there’s been
explosive growth in ecommerce over the past five years,
the store remains a very important channel for shopping
and purchasing.

Figure 10
Due to changes in shopping preferences over the past five
years, consumers want more flexibility in how, where, andwhen they make purchases across product categories.
Food andbeverage

Personal careand beauty
99%

93%

98%
89%

98%
87%

87%

82%

77%

71%
65%

61%

65%

43%
28%
17%
11%

9%
20147

2019

Buy on-line andpick up

12

Apparel2014

2019
Buy on-line
and ship

2014

2019

Buy in-store

Action guide
Shopping has changed, but
fundamentals still matter
1. Deliver value instead of disappointment byusing technology for the right assortment– Leverage external data to make better assortment
decisions and more accurately forecast demand
patterns—to have the right product available atthe right place and the right time.
– The abundance of non-historical, non-linear external
information such as weather, neighborhood composition, and local events can help brands and retailers
make more relevant merchandising and assortment
decisions.

2. Be omnipresent, and fulfill anywhere, anyway,
and anytime– As shopping continues to splinter, retailers must eliminate channel silos and become omnipresent wherever,whenever, and however consumers demand.

3. Expand the role of the store to reach its
full potential– As BOPIS/Click-and-Collect continues to grow,distribution capabilities at the store must evolve andscale accordingly. Borrowing a chapter from warehousemanagement, robotic automation is gradually making its
way into stores. These micro-fulfillment centers not only
operate at a hyperlocal level, they also address thegrowing demand for cross-channel orders with higher
productivity.
– Explore how to use automation to handle repeatable
tasks, such as counting inventory on store shelves,to free up time for store associates, improve the in-store
experience, and provide services that help simplify
consumers’ lives.
– As the role of the store changes, so should the metrics
by which stores are measured. Typically, store metrics
are based on three primary things: sales, expense percentage, and four-wall profit. If the store’s purpose is tobe a physical component of the purchasing, fulfillment,
and delivery cycle, then adapt store measurements toinclude any purchases its customers make, no matter
how they are fulfilled.

– Despite expectations around the omnichannel experience, ecommerce and supply chain often operate under
two separate functions within an organization. Beyond
just technology, brands require a tighter integration
between the two functions to effectively address consumer expectations of buying and receiving goods
anytime, anywhere, and anyway.
– Fulfillment is often challenged by inventory availability
and logistics constraints, but complexity is compounded
further with omnichannel distribution, be it distribution
center (DC) to store, store to home, or DC to home.
Through prescriptive analytics and machine learning,
shipments can be optimized for delivery across all nodes.
The ability to optimize fulfillment using multiple variables(shipping cost, transit-time, margin impact, and weather,to name a few) can be the difference between a profitableand unprofitable business.

13About the authors
Karl Haller

Karl.Haller@ibm.com
linkedin.com/in/karlhaller@krhaller
Karl Haller, Global Leader, Consumer Center ofCompetence, IBM Global Business Services. Karl leads
the IBM Global Consumer Industry Center of Competence,a team of industry experts who develop transformational
solutions and programs for leading retailers and consumer
products companies around the world. Karl has expertisein business strategy, customer experience and engagement, analytics and insights, merchandising,omnichannel, and ecommerce.

Jim Leejim.s.lee@us.ibm.com
linkedin.com/in/jim-s-lee

Jim Lee, Partner, Distribution Sector, Global Business
Services. Jim Lee leads the Supply Chain Strategy practicefor the Consumer Products and Retail industries at IBM.
He works with manufacturers and retailers to design new
ways to improve service level, cost, and working capital.
Jim helps the world’s largest consumer brands rethinktheir operating models through digital innovations suchas analytics, AI, and automation.

Jane Cheung

jane.cheung@us.ibm.com
linkedin.com/in/janescheung@JaneSCheung
Jane Cheung, Global Research Leader for the Consumer
Industry, IBM Institute for Business Value. Jane has over
20 years of working experience across retail and consumer product industries. Jane has worked at Macy’s,
Disney, Nike, and Hallmark Cards and as a trusted advisor
for clients in a consulting capacity at IBM and Accenture.
Jane earned an MBA from California State University,
Long Beach.
14

Methodology
To better understand how consumer preferences andpriorities keep changing, as well as the resulting impacts
on brands, the IBM Institute for Business Value, in association with the National Retail Federation, conducted a
research study of 18,980 consumers in 28 countries.
We asked about shopping habits, drivers of brand andproduct choice, consumption patterns, and the willingness to change behavior based on a variety of personalvalues and beliefs. We analyzed responses by age group,
income, and market (growth versus mature).
Respondents by country
12% US

3%South Korea

11% China

3%

Spain

8%

Japan

2%

Saudi Arabia

7%

Canada

2%

UAE

7%

UK

1%

Belgium

6%

India

1%

Denmark

5%

France1%Finland5%

Germany

1%Indonesia

3%

Australia

1%

Malalysia

3%

Brazil1%

Norway3%

Ireland1%

Netherlands

3%

Italy

1%

Sweden3%

Mexico1%

Thailand3%

Nigeria<1% Luxembourg

Related reports
Lee, Jim S., Gene Chao, and Jane Cheung. “Intelligent
automation for consumer products and retail supply
chains.” IBM Institute for Business Value. https://www.
ibm.com/thought-leadership/institute-business-value/report/ai-retail-supply-chain
Haller, Karl, Jim S. Lee, Gene Chao, Jane Cheung,
Christopher K. Wong, and Lance Tyson. “The artificial
intelligence revolution in retail and consumer products.”
IBM Institute for Business Value. https://www.ibm.com/
thought-leadership/institute-business-value/report/
ai-retail-consumer-products
Ortiz, Armando, Mark McGiffin, and Carolyn Heller Baird.
“How extended reality will reshape commerce.” IBM
Institute for Business Value. https://www.ibm.com/
thought-leadership/institute-business-value/report/
extended-reality-commerce

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Notes and sources
1 Henisz, Witold, Tim Koller, and Robin Nuttall. “Fiveways ESG creates value.” McKinsey Quarterly.
November 2019. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/
our-insights/five-ways-that-esg-creates-value
2 Mandzy, Andrew. “Capitalizing on health and wellness
trends.” Nielsen Company. February 2017. https://www.nielsen.com/wp-content/uploads/
sites/3/2019/04/health-wellness-report-feb-2017.pdf
3 “From bean to brew on the blockchain.” IBM casestudy. Accessed June 24, 2020. https://www.ibm.
com/thought-leadership/coffee/
4 Templeman, Luke, and Jim Reid. “Climate change andcorporates: Past the tipping point with customers andstockmarkets.” Deutsche Bank Research. September
2019. https://www.dbresearch.com/PROD/RPS_
EN-PROD/PROD0000000000500285/
Climate_change_and_corporates%3A_Past_the_tipping_po.PDF

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5 Plummer, Darryl, et al. “Gartner top strategic predictions for 2018 and beyond.” Gartner Group. October 3,
2017. https://www.gartner.com/smarterwithgartner/
gartner-top-strategic-predictions-for-2018-and-beyond/
6 Adobe Analytics. Holiday Insights 2019. December
2019. https://www.adobe.com/content/dam/www/us/
en/experience-cloud/digital-insights/pdfs/adobe_
analytics-holiday-predictions-2019.
pdf?promoid=NV3KR4X2&mv=other
7 Davis, Trevor, Anthony Bigornia, and Jane Cheung.
“Brand Enthusiasm: More than loyalty.” IBM Institutefor Business Value. November 2014. https://www.ibm.
com/thought-leadership/institute-business-value/report/brand-enthusiasm

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Research insights are fact-based strategic insights forbusiness executives on critical public and private sector
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